U.S., Mexico start trade talks after Trump's tariff threat

Commerce Secretary Wilbur Ross participates in a meeting at the White House on April 4, 2019. File Photo by Chris Kleponis/UPI | License Photo

June 3 (UPI) -- Top economic officials of the U.S. and Mexican governments will meet in Washington, D.C., Monday to discuss trade, just days after President Donald Trump threatened tariffs if Mexico doesn't stop migrants from crossing the border illegally.

Trump threatened 5 percent tariffs on Mexican goods starting June 10, and the penalties would raise periodically until they reach 25 percent in October. The tariffs would remain "until such time as illegal migrants coming through Mexico, and into our country, STOP," Trump posted on Twitter.

More talks are set for Wednesday between U.S. Secretary of State Mike Pompeo and Mexcian Foreign Relations Secretary Marcelo Ebrard.

Ebrard said he will be "firm and protect the dignity of Mexico."

Mexican President Andres Manuel Lopez Obrador has struck an optimistic tone, touting a positive relationship between the United States and Mexico.

U.S. consumers would bear the brunt of the tariffs, experts have said. An analysis by the Tax Foundation warned they would be the biggest tax hike in more than three decades. It said the effect could reduce the U.S. gross domestic product by $124.8 billion, lower wages by 0.33 and reduce the workforce by 387,041 full-time equivalent jobs.